Logo image
Come Aboard with the Leviathan: The Roles of Personal and Institutional Political Ties During Regime Change
Working paper   Open access

Come Aboard with the Leviathan: The Roles of Personal and Institutional Political Ties During Regime Change

Addis Gedefaw Birhanu and Yamlaksira S. Getachew
SSRN
01/06/2021

Abstract

political uncertainty regime change Boards of Directors Political Connections state ownership emerging economies
This study examines the mechanisms by which firms manage uncertainty stemming from regime change by taking Egypt, the second biggest economy in Africa, as an empirical context. We find empirical evidence suggesting that, in times of regime change, firms with institutionalized political connections (state-controlled firms) perform better than those with no such connections. Moreover, firms with no institutional political connections perform better if they renovate their personal connections, albeit only in certain industries. Further, to a certain extent, personal and institutional political connections are substitutes in managing political uncertainty arising from regime change: the presence of one nullifies the advantage of the other.
pdf
SSRN-id3857432-1DownloadView
Open Access

Metrics

6 File views/ downloads
16 Record Views

Details

Logo image